(Adds details on Chanos’ bet and request for comment to Continental, paragraphs 3-6)

By Trevor Hunnicutt

NEW YORK, Sept 12 (Reuters) - Kynikos Associates LP founder James Chanos on Tuesday said he is betting against Continental Resources Inc and other oil and gas exploration and production companies.

Chanos, a closely-watched investor, said the company struggles to generate cash even in favorable market environments.

Speaking at the CNBC Institutional Investor Delivering Alpha Conference in New York, Chanos said Continental Resources’ compensation incentives are structured to reward management for growth, not returns.

“The problem is that, in our view, people have been looking at this industry through the rose-colored glasses of Wall Street,” said Chanos, adding that most of the dollars “that come out of the ground” have to go right back in as companies make investments in future growth.

A spokeswoman for Continental Resources did not immediately respond to a request for comment. The company’s shares pared earlier gains during Chanos’ remarks on Tuesday afternoon and were last trading up less than a percent.

Chanos said he was also shorting, or betting against, other exploration and production companies, though none focused in the prolific Permian shale basin in Texas. He did not name the other stocks.